Employee Redundancy in Auckland
Handling Employee Redundancy in Auckland with Minimal Risk
It’s never easy to face employee redundancy in Auckland. However, as a business owner, you know that it is sometimes part of the job. To get through this process as smoothly as possible and achieve a fair outcome for everyone involved, let Neville Farrelly Employment Solutions help.
What You Should Know About Staff Redundancy
“Restructuring” is a term that means changing the structure of a business and defining which roles are and which aren’t remaining the same. The risk of a personal grievance being raised is high, so we recommend obtaining professional support during this process. Here are a few things to keep in mind.
- Restructuring is both difficult and risky. It is not difficult to fulfil the legal requirements of a restructure. However, it may motivate staff to fight to keep their job or to get as much money out of your company as possible in the event of an unsatisfactory personal outcome.
- You need a genuine commercial reason. Examples of valid reasons may include a downturn in the economy, or a change in the type of technology you are using, such as a switch to a new system that reduces the number of employees you need.
- A fair and reasonable process is essential. You can minimise your risk by clearly defining your genuine commercial reasons for doing what you’re doing and treating everyone equally and respectfully.
Common Mistakes People Make Regarding Employee Restructuring
When you need to complete a staff restructure, there are best practice processes you should follow. Although every redundancy process for employers in Auckland is unique, following a clearly defined set of “rules” can help you avoid the mistakes that get businesses into trouble. Here are a few such mistakes to be sure to avoid.
- Not having a justifiable commercial reason. First and foremost, be sure that you have a genuine commercial reason for the restructure. For example, you may need to cut costs to keep your business afloat, or perhaps you want to refocus your business and need to make changes that align with your new direction.
- Basing it on issues related to performance. If an employee isn’t performing well or is a poor fit for your company, you should use the appropriate processes to manage the performance issue, not start a restructure. Even if your reason for the restructure is genuine and justifiable, the process can be derailed if it causes an employee to raise a personal grievance against you.
- Neglecting the obligation to redeploy employees. Too often, employers don’t understand or neglect the requirement to redeploy existing employees to new roles. Businesses will often invite existing employees to apply for new roles along with external candidates but end up with personal grievance claims filed against them because the new positions are too similar to the employee’s current job, yet not offered to them directly.
About Neville Farrelly Employment Solutions
It’s easy to see that dealing with a company restructure can be tricky. At Neville Farrelly Employment Solutions, we can help you navigate the process and get the outcome you want with minimal risk. Contact us today for more information.